I am 60 next year, can I afford to retire then or must I work on to age 65?

This was the question asked by Matt as he met with his financial planner. Matt was the HR Director for an international manufacturer located in the West Midlands and was clearly unsure about how long he needed to work before being able to retire to enjoy their desired lifestyle.

The cashflow demonstrated that retirement at 60 was certainly feasible, even allowing for Joanna’s extreme pessimism. On the basis of the cashflow models, Matt and wife Joanna went over to Portugal where they fell in love with a property in the Algarve. On their return they put their UK home on the market and Matt gave his employer six months’ notice.

Within the year they had moved out to the Algarve. Matt is a very keen golfer and relished the opportunity to play on the many excellent golf courses in that part of the world.

Naturally, their cashflow models were updated annually to ensure they remained on track to achieve their objectives. When moving abroad, their plan was to return to the UK as Matt approached age 70. Three years ago they did just that, the cashflow model having served them very well.